Digital Gas Accepts Invitation to Participate in Major Energy Centers across Europe.

NEW YORK -- Digital Gas, Inc. (OTC Pink Sheets:DIGG) announced that Digital Ultracap has accepted an invitation from its partner ICCU Holding B.V. to participate in the first of several major energy centers in Europe. ICCU is considering projects in several areas including Germany, Poland, Portugal and Bulgaria. The projects are eligible for World Bank funding and in fact the first selected location has been pre-approved for funding. ICCU, which has already decided on the first site, will make that announcement next month.

The energy centers will contain a manufacturing complex for "intelligent ultracapacitors" and solar panels made of polycrystalline silicon to be manufactured for the European market and a bio-ethanol facility. With Digital Ultracap now involved in the project, ICCU has agreed to the expansion of the complex to include a Digital Gas energy & farming center which will process local waste and provide food and pharmaceutical products for European distribution. Other products and technologies of Digital Gas will be incorporated into the project to enhance profitability.

The projects in any of the above countries can be executed completely within 3 years of the start of facility construction and will provide up to 1,500 jobs for the local communities that sponsor them. Each project will have income within 18 months of start-up.

BMW, Porsche and VW concluded a collaboration contract for the development of hybrid drives. One of the considerations in locating the first plant will be to be in proximity to large corporate customers in the automotive and other industries.

Ultracapacitors are anticipated to have a major role in the automotive industry. In vehicles with conventional electric and hybrid drives ultracapacitors will enable a more rapid acceleration and higher scope, and they have a much longer life than conventional battery systems. Furthermore, ultracapacitors can store the energy available for braking or down hill rides directly as electric energy, whereas conventional batteries would be overcharged through the present high charging currents. Through the use of ultracapacitor technology in the automobile industry, thousands of new jobs will be created on a worldwide basis.

The first five products to be marketed will be: 1. a hybrid system for storing and balancing generated power (PV, Wind, and Fuel Cell); 2. a system for truck and automotive cold weather starts that will improve performance in parallel with existing batteries; 3. uninterrupted power supply systems for grid connected end users; 4. power balancing and backup systems for hospitals, offices, data-hotels, telecom, high-end power users and others; and 5. a system for improving the quality of grid supplied power (frequency, voltage, et cetera).

This ultracap is better then other products and systems on the market: because: 1. it is faster in storing and supplying power; 2. the capacity per weight and volume as well as the efficiency is higher than any other competitive product currently on the market; 3. all other capacitors are cylindrical and consume more valuable space per volume than our stretched-type ultracap; 4. the weight per volume is less than the competition.

In light of the above deal in Europe and to facilitate senior funding of its subsidiaries, the management of Digital Gas has agreed to form a holding company which will own the following subsidiaries: Digital Ultracap, Digital Sofcell, Synfuel, Digital Electric and a company to be formed which will be comprised of an aggregate business with significant cash contracts. Digital Gas will retain control of the holding company on a "post financing" basis and plans to distribute shares in the holding company to then present shareholders so that stock dividends can be paid if and when a decision is made by the holding company to either go public on a senior exchange or spinout its subsidiaries.